Study On The Treatment Of Taxes In Asset Evaluation

Domestic appraisal industry germinated in the late1980s. At that time, it mainlylearned from foreign mature valuation experience and practical operation and servedfor Sino-foreign joint enterprises, restructuring of state-owned enterprises, changes inproperty rights and asset trading activities. With the development of financial markets,appraisal plays a more and more important role in the market. There are also manyproblems and difficulties to be solved with the expansion of appraisal business.Among all these, tax treatment in appraisal is one of the major important andcontroversial subject in practice.Challenge and controversy from practitioners led to tax-related issues. It wouldbe beneficial to both appraisal theory and practice to deal with this problem well. Bystudying tax treatment process, it would also provide a more scientific and reasonabletransactions’ reference for customers. Meanwhile, tax treatment issues are involvednot only in the aspects of asset evaluation, but in the transaction behaviors and postmatters of transaction as well. Therefore, it is necessary to confirm assessed value forboth appraisal process and the fair orderly promotion of transaction behavior.This thesis mainly studies important taxes which would cause major effects inthe value of appraisal.1. Analyze on different ways of tax treatment in cost method to explaindifferent effects to the value of subject assets.2. Tax policies are always changing. They have significant impacts on appraisal.Through value-added tax restructuring program and land value-added liquidation taxtreatment on the assessed value, this thesis explains that appraisal is not simpleestimates. Value of assets is closely linked to policies of tax.3. Study the impact of tax treatment on transaction when it has an increase ordecrease of value in appraisal.4. Study the impact on value of assets when assessing the value of enterprisesand individual assets with different tax treatment methods. The tax treatment in transactions’ aspect is not in the study range of this thesis.This thesis seeks an objective and impartial analysis of the impact of taxes on thevalue of assets, and seeks a scientific way to assess the value which could be thereasonable reference for the parties involved in the transaction and helps to reduce thesubsequent contradictions. Meanwhile, this thesis tries to come up with methods oftax treatment and feasible recommendations based on the current fiscal policy andappraisal requirements, combined with the current assessment practices.